Nigeria’s electronic payment ecosystem has hit a historic milestone, surpassing N1.07 quadrillion in transactions in 2024—the first time e-payments in the country have crossed the quadrillion mark.
In dollar terms, this amounts to approximately $702.6 billion, based on the official exchange rate of N1,535/$1 as of December 31, 2024.
According to data from the Nigeria Inter-Bank Settlement System (NIBSS), transactions conducted via the NIBSS Instant Payment (NIP) platform grew by 79.6% compared to N600 trillion in 2023.
Throughout the year, electronic payment activity maintained a steady rise, peaking in December 2024, when Nigerians spent a record-breaking N115.1 trillion via e-payment channels. The holiday season, marked by heightened consumer spending, contributed to this all-time high.
Meanwhile, the volume of transactions processed by NIBSS increased from 9.7 billion in 2023 to 11.2 billion in 2024, reflecting a 15.5% rise year-on-year.
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Industry experts attribute this surge to Nigeria’s ongoing cash scarcity and the Central Bank of Nigeria’s (CBN) cashless policy, which limits cash withdrawals.
Under the revised cashless policy introduced on January 9, 2023, individuals can withdraw a maximum of N500,000 per week, while corporate organizations are capped at N5 million weekly.
A Lagos-based financial analyst, Mr. Adewale Adeoye, explains how this shift is changing spending habits:
“Cash is no longer readily available in banks like before. If you walk into a bank today, they might tell you the maximum withdrawal at the counter is just N5,000. ATMs are often out of cash, so people are left with PoS operators or mobile transfers as their only options.”
The NIBSS Instant Payments (NIP) system, introduced in 2011, has become the backbone of Nigeria’s cashless economy, providing instant interbank transfers via multiple channels—including mobile apps, USSD, internet banking, ATMs, PoS terminals, and bank branches.
With the continued enforcement of the CBN‘s cash withdrawal limits and the growing adoption of digital payments, analysts predict that Nigeria’s e-payment sector will continue to expand, further reducing reliance on cash.
